if the profit of the p'ship firm is less than Rs. 100000, then what will be the criteria for calculating the salary payment to the working partner?
Nirav
(Accountant)
(595 Points)
Replied 17 October 2010
If profit of the firm is less than Rs. 100000. Lets say it is Rs. 60000. Then salary to working partner will be maximum of followin two amounts:
1. 90% of Rs. 60000 = Rs.54000
2. Rs.150000.
CA Himanshu Bansal
(Risk Manager)
(2345 Points)
Replied 18 October 2010
| Originally posted by : Devendra | ||
 |
if the profit of the p'ship firm is less than Rs. 100000, then what will be the criteria for calculating the salary payment to the working partner? |
 |
It will be calculated as follows :
Lower of the two -
1.Sum Actually paid as salary.
2. Higher of the two -
(i) 150,000
(ii) If profits are upto 300,000 then 90 % of profits.
In your case, if we assume salary as Rs.60,000 ,Then according to above criteria,salary allowed will be actually paid, ie, Rs.60,000.
CA. Abhishek K. Pandey
(Manager (Advance))
(901 Points)
Replied 18 October 2010
In your case, simply distribute salary upto a maximum of Rs. 1,50,000.00
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